The King v. Eastern Terminal Elevator Co.

The King v. Eastern Terminal Elevator Co.

By a majority the impugned subsection s.95(7) of the Canada Grain Act is ultra vires the Parliament of Canada because it forms part of a scheme to regulate terminal elevators and the proprietary surplus of grain — matters falling within provincial jurisdiction (property and civil rights, local works) — and it could not be justified as a valid exercise of federal heads (trade and commerce, POGG or agriculture) nor as a necessary ancillary measure.

Citation
[1925] SCR 434
Parties
Appellant/plaintiff: His Majesty The King; Respondent/defendant: Eastern Terminal Elevator Company
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
5 May 1925
Procedural Posture
Constitutional Law Appeal (division of Powers) / Appeal to the Supreme Court of Canada From the Exchequer Court of Canada
Outcome
Appeal dismissed; judgment of the Exchequer Court affirmed (majority). Anglin C.J.C. dissenting.
Legal Topics
Ultra Vires, Division of Powers, Ancillary Doctrine, Regulation of Trade and Commerce, Agriculture Jurisdiction, Terminal Elevators, Licensing
Source Language
English
Constitutional Law Federalism Administrative Law Trade and Commerce Ultra Vires Division of Powers Ancillary Doctrine Regulation of Trade and Commerce +3 more

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Parties

His Majesty The King

Appellant/plaintiff

Eastern Terminal Elevator Company

Respondent/defendant

Procedural Posture

Constitutional Law Appeal (division of Powers) / Appeal to the Supreme Court of Canada From the Exchequer Court of Canada

Legal Issues

  1. 1 Validity of s.95(7) of The Canada Grain Act (as amended 1919)
  2. 2 Whether Parliament could lawfully regulate terminal elevators and appropriate surplus grain under s.91 heads (trade and commerce, POGG)
  3. 3 Whether the provision was ancillary to a valid federal scheme or an impermissible encroachment on provincial powers (property and civil rights, local works)

Ratio Decidendi

By a majority the impugned subsection s.95(7) of the Canada Grain Act is ultra vires the Parliament of Canada because it forms part of a scheme to regulate terminal elevators and the proprietary surplus of grain — matters falling within provincial jurisdiction (property and civil rights, local works) — and it could not be justified as a valid exercise of federal heads (trade and commerce, POGG or agriculture) nor as a necessary ancillary measure.

Court Disposition

Appeal dismissed; judgment of the Exchequer Court affirmed (majority). Anglin C.J.C. dissenting.

Orders

  • Appeal dismissed with costs
  • Judgment of the Exchequer Court affirmed